Roy deposits $7000. Determine the APY if there is an APR of 6.5% compounded quartely. Express your answer as a percentage rounded to the nearest hundredth of a percent, if necessary.

Answer 1

To find the APY, we can use the formula:

APY = (1 + (0.065/4))^4 - 1

APY = (1 + 0.01625)^4 - 1

APY = (1.01625)^4 - 1

APY = 1.066824717 - 1

APY = 0.066824717

Converting this to a percentage rounded to the nearest hundredth of a percent, we get:

APY ≈ 6.68%

Therefore, the APY is approximately 6.68%.